Adani Enterprises, Adani Power, Adani Ports rally up to 61% in three months; is more upside left?

Shares of select Adani Group companies have delivered strong returns over the past three months. Adani Enterprises Ltd (AEL), Adani Power Ltd and Adani Ports and Special Economic Zone Ltd (APSEZ) have gained 61.09 per cent, 49.20 per cent and 30.59 per cent, respectively, during the period.

Morgan Stanley recently initiated coverage on Adani Enterprises with an 'Overweight' rating and a target price of Rs 3,638, while S&P Global Ratings upgraded APSEZ's long-term issuer credit rating to investment-grade 'BBB' from 'BBB-'.

S&P Global Ratings cited APSEZ's robust cash generation, strengthening balance sheet and ability to fund its expansion plans while maintaining healthy leverage. The agency assigned a stable outlook, expecting the company to sustain strong operating performance over the next 12-24 months and keep its net debt-to-EBITDA ratio at around 2.6 times despite elevated capital expenditure.

Separately, Adani Group Chairman Gautam Adani said at the company's annual general meeting (AGM) that the conglomerate plans to build 10 gigawatts (GW) of nuclear power capacity by 2035, marking its entry into nuclear energy as it expands its integrated power platform spanning thermal, renewable, hydro, gas and transmission businesses.

Technical view: What analysts expect

Virat Jagad, Senior Research Analyst at Bonanza, said AEL remains in a strong uptrend, trading above its 20-, 50-, 100- and 200-day exponential moving averages (EMAs), indicating sustained bullish momentum. He noted that the volume participation has remained supportive.

For fresh positions, Jagad recommended entering above Rs 3,060 with a stop-loss at Rs 2,930 and upside targets of Rs 3,200 and Rs 3,350. Existing investors may continue holding the stock with a trailing stop loss placed at Rs 2,900, targeting Rs 3,200, Rs 3,350 and Rs 3,500 as long as it sustains above short-term EMA support.

On Adani Power, Jagad said the stock is consolidating near Rs 230 after a strong rally, while continuing to trade above its 20-, 50-, 100- and 200-day EMAs, suggesting that the broader bullish structure remains intact.

He suggested fresh entries above Rs 235 with a stop-loss at Rs 227 and targets of Rs 245 and Rs 255. Existing holders may maintain positions with a stop-loss at Rs 221, below the 50-day EMA, while expecting potential upside towards Rs 245, Rs 255 and Rs 265, provided the stock remains above key EMA support.

For Adani Ports, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, said the stock remains bullish on daily charts with strong support at Rs 1,778. According to him, a daily close above the resistance level of Rs 1,849 could trigger an upside move towards Rs 1,990 in the near term.